The current (2006) GSP scheme significantly improved the product coverage of the
general arrangement by increasing this from 6,900 to about 7,200 products[5], from
which the agricultural sector benefits mostly and a large number of products now enter
the EU duty free under this regime[6]. Non-sensitive products (slightly less than half of
the products covered) enjoy duty-free access, while sensitive products (mainly
agricultural products, but also textiles, clothing and apparel, carpets and footwear)
benefit from a tariff reduction of 3.5 percentage points of ad valorem duties compared to
theMFNtariff and a 30 percent reduction of the specific duties (with a few exceptions)[7].
For textiles and clothing, the reduction is 20 percent of the ad valorem MFN duty rate[8].
The EBA also provides a much more generous set of preferences in terms of product
coverage and preferential margin for the exports originating from LDCs.
b. Key characteristics of the EU’s GSP
The primary objective of the GSP, which consists essentially of tariff preferences with
non-reciprocal market access, is to stimulate the exports growth of developing countries
and generate additional export revenue to support the implementation of their own
sustainable development and poverty reduction policy strategies[9]. In response to desires
expressed by GSP beneficiary countries to ensure continued stability, predictability and
transparency, the scheme remained broadly unchanged.However, sometechnical changes
were implemented under certain circumstances, such as the graduation mechanism and
the rules of origin[10], in particular taking into account changes in trade flows.